Oil Rises on Signs of Declining Supply Surplus
by Bloomberg | Julia Fanzeres and Grant Smith
click here to read the original article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil rose amid indications that Russian crude production is dropping, signaling the market’s supply glut may be coming to an end.
Average shipments for Russian crude have dropped below their February averages, according to fresh data, a key development in a market that has been held down this year by the Kremlin’s stronger-than-anticipated crude exports.
Adding to bullish sentiment is news that China will take more steps to revive its economy with additional stimulus. West Texas Intermediate rose above $74 a barrel, surpassing its 100-day moving average, which has been a key resistance level in past months. Crude’s recent moves have been exaggerated by lower summer trading volumes.
Analysts at the US government and Standard Chartered Plc are now forecasting supply deficits over the coming months on expectations demand will climb.
Still, crude is down 6.7% this year on China’s weakness, fears of a global economic slowdown due to monetary tightening by central banks and resilient supply from producers including Russia and Iran. In a recent effort to prop up the market, OPEC+ heavyweights Saudi Arabia and Russia have pledged even more supply reductions.
Traders will be watching the US consumer price index on Wednesday for clues on the path forward for interest rates, and monthly reports from OPEC and the International Energy Agency on Thursday for snapshots of the oil market. The US will provide its Short-Term Energy Outlook later Tuesday.
Prices:
- WTI for August delivery rose $1.84 to settle at $74.83 a barrel.
- Brent for September settlement increased $1.71 to $79.40 a barrel.
by Bloomberg | Julia Fanzeres and Grant Smith
click here to read the original article at Rigzone.com
*this article was not written by Roseland Oil & Gas